Govt evaluating the 36 PLI proposals for telecom sector and networking equipment

The government is likely to approve applications from 33 companies for the production linked incentive (PLI) scheme for telecom sector and networking equipment.

The Rs 12,195-crore scheme aims to boost local production of telecom equipment, reduce dependency on imports and make India a global manufacturing hub by incentivising companies making in India.

It will provide incentives for manufacturing of network equipment, routers, broadband transmission equipment, 5G equipment and consumer premise devices, electronics items required for providing optical fibre-based connections, among others.

The government had received 36 applications for the scheme, of which 33 will be selected, while three will be rejected on technical grounds, a report in The Times of India said.

Foxconn with an investment proposal of Rs 208 crore, Rising Stars Hi-Tech (Rs 125 crore), Nokia Solutions (Rs 125 crore) and Flextronics (Rs 102 crore) are among the global companies which will be shortlisted.

Akashastha Technologies (Rs 593 crore), VVDN Technologies (Rs 400 crore), Neolync Tele Communications (Rs 188 crore), Tejas Networks (Rs 111 crore) are among the Indian companies whose proposals have been selected, the report said.

Sterlite Technologies, Tech Mahindra and Kenstel Networks are the companies whose proposals will be rejected for not fulfilling the required criteria under the scheme.

The PLI scheme for telecom sector will be effective from April 1, 2021. Investments made by successful applicants in India from April 1, 2021 and up to financial year 2024-2025 will be eligible, subject to qualifying incremental annual thresholds. The support under the scheme will be provided from financial year 2021-22 to 2025-26. BusinessToday